DirecTV Group, the nation’s top satcaster, saw a fourfold surge in profits despite slower subscriber growth as CEO Chase Carey cited “higher quality” subs.
Net income rose to $370 million last quarter from $95 million the year before. Revenue grew 13% to $3.7 billion at the El Segundo, Calif.-based company controlled by News Corp.
It’s currently the subject of intense negotiations between News Corp. and John Malone’s Liberty Media. The two are trying to swap Malone’s hefty chunk of News Corp. stock for News Corp.’s stake in DirecTV.
DirecTV said it added 165,000 net subs during the third quarter — fewer than the 265,000 added a year earlier — but up from the 125,000 added in the second quarter.
DirecTV has started tightening credit policies in order to cut down on high-risk customers, resulting in fewer but more lucrative subs.